Dubai, one of the world’s fastest-growing cities, unquestionably provides the ideal environment for companies to flourish. Because of its free trade policies, increasing population, tourist inflow, higher quality of living, and a thriving economy, the country has achieved success. Dubai, often known as the “City of Gold,” is said to account for one-third, or 25 percent, of worldwide gold trading, according to sources. As a result, it would not be incorrect to state that gold trading businesses in Dubai are flourishing. As a result, gold dealing in Dubai is a lucrative and profitable business opportunity for investors from all over the world.
Let us talk about the gold trading industry, which has been expanding at an alarming pace. Since its inception, it has always been regarded as one of the most lucrative and successful business investments in the UAE. In the case of gold and other precious metals, it is a proven fact that there is a consistent and large consumer base. Dubai is a premier jewellery buying destination because of the high level of quality provided by the city, which is backed by government certification.
Having said that, if you wish to establish a gold trading business in Dubai, you are making a great decision.
Registration of a gold trading business
First and foremost, when it comes to establishing a gold trading firm in Dubai, there are three main jurisdictions to choose from: the United Arab Emirates, the United Kingdom, and the United States.
The Dubai Multi-Commodities Centre (DMCC) Free Zone is located in Dubai, United Arab Emirates.
Dubai Mainland Gold and Diamond Park is located on the outskirts of Dubai.
To be specific, all three of these sectors have a number of necessary processes and paperwork that must be completed in order to start your gold trading business.
To assist you, we’ve compiled all of the information you’ll need to get started with your gold trading business in Dubai, in one one location.
DMCC is prohibited in this area.
The Dubai Multi Commodities Centre (DMCC) free zone, which opened in 2002 and located just across the street from the Dubai Marina Beach, has a strategic position. Due to its many benefits, including 100 percent company ownership, well-developed infrastructure, a guaranteed 50-year tax break, and freehold property choices, Dubai is an excellent location for business entrepreneurs or corporations looking to establish a gold trading firm in the UAE.
Furthermore, DMCC provides office space as well as storage facilities. Make sure that when you rent a property for the purpose of doing business, that the tenancy agreement and rental contract are properly drafted, signed, and filed to the DMCC.
The park known as the “Gold and Diamond Park”
Gold & Diamond Park (GDP), which opened its doors in 2011, is one of the best-suited locations in the world for the production and selling of gold and other precious stones. Jebel Ali Free Zone, which is administered by the Jebel Ali Free Zone Authority, is comprised of massive and outstanding manufacturing units, as well as a retail centre and storage facilities.
It is important to note that the GDP of 350 offices and retail stores, as well as 118 manufacturing units, which are all engaged in the trading, selling, and manufacture of gold and precious stones, has increased.
This zone provides benefits such as the ability to hire foreign expats as your employees, 100 percent ownership, cheap corporation taxes, and a hallmarking facility provided by the Dubai Municipality, making it one of the most enticing locations in which to establish a gold trading business. Furthermore, it has just begun leasing premium commercial leasing to entrepreneurs that are interested in the gold trading industry.
It should be noted that GDP offers a variety of licencing choices, with each of these licences requiring the acquisition of a separate licence from a different government, depending on which option you choose. These are some examples:
Licenses for Trading, Manufacturing, and Retailing are required.
E-commerce Service License Dubai Mainland – Gold Souk Dubai Mainland – Gold Souk
The option of establishing a trading firm on the Mainland is also available to you. The major advantages of this location are that it is strategically situated, that it gives you more retail space, that there is no VAT and profit tax, that there is no minimum capital need, and that you may conduct your company in any area of the UAE.
As for starting up your gold trading company in Mainland Dubai, there is no doubt that ‘The Gold Souk Market’ is the best place for you to choose as your base of operations. The fact that local people will be your target market and you will be able to sell to them directly is the most significant advantage of establishing your company in this area, which is home to about 300 shops. Furthermore, the surrounding region is well-known for its import and export activities, so if you are interested in other types of trade, this is a fantastic location to consider.
A firm established in the Mainland gives investors the opportunity to hold 49 percent of the company, with the remaining 51 percent held by a local partner in the Emirate of Dubai.
Obtaining a company licence is an important step.
When starting a gold trading company, the first and most essential step is to acquire a legal trade licence in Dubai, which will provide you the right to do business in the city. Trade licences may be required depending on the type of your company activity and the geographic region you choose to operate in.
In order to establish a gold trading business on the mainland, you must submit an application directly to the Department of Economic Development. If you have chosen to do business in GDP, the licence is issued by the Jebel Ali Free Zone Authority, which is located in Dubai. In the case of a free zone, you must submit your application directly to the governing authority of the particular free zone in question.
The licence structure differs depending on the kind of business activity that your firm chooses to engage in and the location of your organisation.
You are submitting an application for a gold trading business licence.
In all of these instances, you will be needed to provide the following usual paperwork in order to get the permit:
Fees for submitting an application
application form that has been completed
Two pictures the size of a passport
A photocopy of the owner’s passport or visa is required.
Copy of the sponsor’s passport/Emirates ID and the manager’s curriculum vitae
Proof of business registration and a copy of the Initial Approval Certificate
Payment of the first approval fee, as shown by documentation
Fill out the company registration form from the appropriate trade zone.
A notarized copy of the Memorandum of Agreement or the LSA agreement
The arrangement of tenancy or lease (if any)
To be confident that you have completed the necessary procedures before submitting an application to the appropriate authorities, you should do the following checks:
Obtaining a legally recognised business name
Choose the kind of company endeavour you want to start.
A detailed business strategy is required.
Obtaining a legal status for your company endeavour in Dubai is a complicated process.
Choose a business partner or a local sponsor.
The following is the bare minimum in terms of capital: This criterion is only relevant in the case of the free zone. It is necessary to have a minimum approved capital of AED150,000 in addition to paying a rent to the gold park administration. In addition, you will be required to pay a 15 percent down payment on the unit’s annual rent, which will be refunded if the property is returned. This is in addition to the annual maintenance charge.
The drafting and signing of Memorandum of Agreements (MoAs) or Letters of Support Agreements (LSAs) with your partner or local sponsor in Notary Public Court.
For the authorities, an attested permission letter for the company’s name is required.
Tejari (leasing and tenancy contract) for your company’s operations.
Opening a bank account in Dubai for gold trading businesses is a simple process.
After receiving your licence, you will need to establish a corporate bank account in order to execute financial activities and payments on behalf of the company.
Are you considering establishing a gold trading business in Dubai? The establishment of a gold trading business in Dubai may undoubtedly prove to be a lucrative enterprise for you. Nevertheless, this is only achievable with the appropriate amount of preparation and execution. Furthermore, for an overseas investor, the procedure may seem to be very difficult due to the large number of laws involved. In this regard, if you are considering starting a gold trading company in Dubai, call Generis Global right now. Our team of specialists is well-versed in all of the essential legal etiquette and procedures. Leave the planning to us, and we’ll see you through to the establishment of your gold trading business in Dubai.